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U.S. Fines Southwest Airlines $140 Million for Holiday Meltdown
18.12.2023 - 11:35 / nytimes.com / Pete Buttigieg
The Transportation Department on Monday announced a $140 million fine against Southwest Airlines over a meltdown last winter that disrupted travel for about two million people during the holiday season.
Of the $140 million, Southwest Airlines will pay $35 million to the federal government. For the remaining amount, the department is giving the airline credit for providing frequent-flier points as an apology to customers affected by the meltdown, and for agreeing to give out tens of millions of dollars in vouchers to customers affected by future delays and cancellations.
The fine is roughly 30 times what had previously been the department’s largest penalty against an airline for consumer protection violations, a $4.5 million settlement with Air Canada in 2021 over customer refunds.
“Today’s action sets a new precedent and sends a clear message: If airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg said in a statement. “Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.”
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